How to Finance a CherryBerry Franchise: Self-Serve Yogurt Bars
By Marc Cornella
A CherryBerry franchise loan usually pays for a leased storefront turned into a self-serve frozen yogurt bar: a wall of soft-serve machines, a toppings bar, freezers, a scale at checkout and a bright, family-friendly dining room. Because the owner rarely buys the building, most of the money goes into improvements and equipment inside someone else’s space, and that shapes how a lender looks at the deal.
This article covers what is known about the brand, the costs to document, the fees that continue after opening, and how SBA and conventional loans may fit. US Professional Funding is not affiliated with, sponsored by or endorsed by CherryBerry; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice.
CherryBerry Franchise Loan at a Glance
- Concept: self-serve frozen yogurt bars where guests fill their own cups from rotating flavors and toppings, then pay by weight.
- Origins: headquartered in Tulsa, Oklahoma, the brand grew through franchising across the Midwest, the Plains and the South.
- System size (historical): a January 2014 company announcement reported 156 self-serve cafés in 25 states and several other countries.
- Ownership: since 2014 the brand has been part of a larger multi-brand frozen yogurt franchise system, so confirm the franchisor entity named in the FDD you receive.
- Fees and investment: we could not verify a current franchise fee, royalty or Item 7 range, so rely on Items 5 through 7 of the current FDD.
- SBA Franchise Directory: listed as “CherryBerry” (code S0368) with no additional notes.
What Is CherryBerry?
CherryBerry is a self-serve frozen yogurt concept. Guests pull their own yogurt from a row of machines, add fruit, candy and sauces, and pay by the ounce. The format keeps the menu simple and staffing lean, because guests do most of the work while employees restock, clean and run the register.
The brand grew out of Tulsa and expanded mainly in smaller and mid-sized markets. According to a January 2014 announcement by the company that acquired the franchisor, CherryBerry then franchised and operated 156 cafés in 25 states, from Arkansas and Kansas to Montana and Wisconsin. We could not verify the current number of open shops, so ask for the latest Item 20 outlet tables.
Why lenders look closely at frozen yogurt. A yogurt shop has a seasonal sales curve, a modest average ticket and a build-out that cannot be moved if the location underperforms. Lenders focus on the location and lease, the borrower’s liquidity, and the strength of the brand’s support and supply chain.
CherryBerry Franchise Costs
We could not access a current CherryBerry disclosure document, so this section explains the cost categories a lender will expect to see. Your actual numbers belong in Items 5, 6 and 7 of the FDD, backed by contractor bids and equipment quotes.
Initial franchise fee
Item 5 states the fee, when it is due, whether any part is refundable and whether a lower fee applies to additional shops. SBA lenders can generally include the fee in the financed amount if the deal supports it.
Leasehold improvements
Turning a retail box into a yogurt bar is the largest variable cost: plumbing and floor drains for the machines, added electrical capacity, ventilation for machine heat, flooring, lighting, a counter, restrooms and the brand’s decor package. A second-generation dessert or café space can cut some of these costs. Our article on restaurant build-out financing explains how lenders budget and draw these costs.
Equipment, opening costs and working capital
Frozen yogurt machines are the core asset, supported by a refrigerated toppings bar, freezers, scales, a point-of-sale system, furniture and signage. Add training travel, opening inventory, grand opening marketing, insurance, deposits and permits. Treat the Item 7 “additional funds” line as a minimum, because a shop that opens in the fall may need to carry payroll and rent through winter.
Your total investment
When you review Item 7, look for these line items and the assumptions behind each range:
- Initial franchise fee
- Rent, security deposit and any pre-opening rent
- Leasehold improvements and design fees
- Yogurt machines, refrigeration and toppings equipment
- Furniture, fixtures, decor and signage
- Point-of-sale system and technology
- Opening inventory, training, licenses and insurance
- Additional funds for the initial operating period
If your build-out estimate runs above the high end of the range, lenders will want to know why.
Ongoing Fees and How They Affect Your Loan
Item 6 lists every recurring fee: the royalty, any marketing or brand fund contribution, technology fees, and transfer and renewal fees. We could not verify current CherryBerry rates, so read Item 6 carefully.
Lenders size a loan on the cash flow left after operating costs, and fees calculated on gross sales come off the top. In a yogurt shop the other large costs are rent, labor, yogurt mix, toppings and cups. A projection that leaves out royalty and marketing contributions overstates the payment the shop can support.
Seasonality and debt service. Sales typically peak in late spring and summer and soften in colder months, especially in the northern markets where CherryBerry built much of its footprint. Loan payments do not change with the weather, so lenders look for a reserve or seasonal line of credit. Also ask whether the franchise agreement requires remodels at renewal or transfer.
Franchisor Requirements for New Owners
We could not verify a published minimum net worth, liquid capital or experience requirement for CherryBerry. Expect the franchisor to review your finances, background and management plan, and to approve the site and lease. Lenders apply their own standards in parallel, so many owners pursue brand approval and loan approval at the same time.
Ways to Own a CherryBerry
Opening a new shop. A new location starts with site selection, a lease and a build-out. Lenders underwrite projections rather than history, so your plan, site and liquidity carry most of the weight. Our page on franchise start-up financing covers how new units are funded.
Buying an existing CherryBerry. A resale comes with equipment, staff and sales history a lender can verify. The franchisor must approve the transfer and the landlord the lease assignment. See buying a franchise resale and our page on franchise restaurant acquisitions.
Financing Options for a CherryBerry Franchise
SBA 7(a) loans. The SBA 7(a) loan program often fits a leased yogurt shop, because one loan can cover the franchise fee, build-out, equipment and working capital, or the price of an existing shop. The program maximum is currently $5 million, and program rules can change.
SBA 504 loans. SBA 504 loans fit mainly when the owner is buying a building or retail condo for the shop, which is less common in this format.
Conventional term loans. Experienced operators with strong collateral may use conventional business loans, with more emphasis on collateral and guarantor net worth.
Equipment financing. Yogurt machines, freezers, toppings bars and point-of-sale hardware can sometimes be financed separately through restaurant equipment financing and leasing. That payment still counts in the primary lender’s cash flow analysis.
Working capital and lines of credit. A line can smooth the winter dip, fund a spring inventory build or cover a machine repair. See restaurant working capital.
Seller financing on resales. A seller may carry part of the price. Seller notes are typically subordinate to the primary loan, and SBA rules may limit them, so involve your lender early.
SBA Loans for CherryBerry Franchisees
An SBA-backed CherryBerry franchise loan is made by a participating lender with an SBA guarantee on part of the loan. For a franchise, the lender also confirms that the borrower remains independent of the franchisor, and the SBA Franchise Directory helps with that review.
The directory listing. CherryBerry appears as “CherryBerry” under code S0368, with no additional notes. A listing can simplify a lender’s review, but it does not approve any borrower or guarantee a loan. Because the brand sits inside a larger franchise group, make sure the agreement you sign matches the brand the listing covers, and give your lender the full agreement early.
Application tips. Have the FDD, franchise agreement, lease or letter of intent, bids, equipment quotes, a sources and uses statement, personal financial statements, tax returns and résumés ready. Our SBA loan calculator gives early payment estimates for planning only.
How Lenders Evaluate a CherryBerry Deal
Personal credit and financial history. Lenders review each principal’s credit, tax returns and debts, and significant owners typically sign personal guarantees.
Net worth and liquidity. Expect questions about your cash injection and post-closing reserves, which matter more in a seasonal business.
Experience. Food service, retail or management experience helps; a first-time owner can show a hands-on role, a strong manager and completed training.
Business plan and projections. Build a monthly projection with summer peaks, winter troughs, realistic labor, product costs, rent and every franchise fee, plus the local draw of schools, youth sports and evening traffic.
The FDD, franchise agreement and lease. Lenders want the franchise term and lease, including renewal options, to run at least as long as the loan, and the landlord to consent to a collateral assignment.
Historical financials on resales. Expect a review of tax returns, sales reports, machine age and condition, and the seller’s reason for leaving.
Yogurt Machines and Equipment Planning
Machines run long hours and need regular cleaning, parts and service, and a failed freezer can cost a hot weekend’s sales. Before financing a resale, ask for service records and price replacements for any machine near the end of its life. Some buyers finance new machines separately so the purchase loan covers goodwill and the lease.
Multi-Unit Growth and Development Agreements
Owners who do well with one shop often look at a second nearby. Each location typically needs its own franchise agreement, site approval and build-out; if development agreements are offered, Items 5 and 12 explain fees, territory and schedule. Lenders look at the first shop’s results, global cash flow and remaining liquidity, and SBA limits apply across all of a borrower’s SBA loans.
Real-World Scenarios
A family buying an existing shop. A couple with management backgrounds buys an established CherryBerry in a college town with an SBA 7(a) loan and negotiates a lease extension that runs past the loan term.
An owner replacing aging machines. A franchisee finances new machines through equipment financing so operating cash stays available for the spring inventory build.
A new shop in a growing suburb. A first-time owner uses SBA financing for the build-out and equipment and keeps a line of credit in place for the first winter.
Common Mistakes to Avoid
- Building a projection on summer sales without modeling the winter slowdown
- Signing a lease before the franchisor and lender have reviewed it
- Relying on last year’s FDD for current fees and ranges
- Buying a resale without checking machine age and service history
- Spending all available cash on the build-out and leaving no opening reserve
For more, read about the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your CherryBerry Franchise
Step 1: Request the current FDD. Confirm the franchisor entity, fees, Item 7 range and outlet tables with a franchise attorney.
Step 2: Talk to current owners. Item 20 lists franchisees; ask about build-out surprises, seasonality and support.
Step 3: Choose your path. Decide between a new shop and an existing one.
Step 4: Build a detailed budget. Support each line with bids or quotes and add a contingency.
Step 5: Speak with a financing specialist. Before signing a lease or purchase agreement, confirm the loan structure and the cash you will need.
Step 6: Assemble documents and close. Gather tax returns, financial statements, résumés and the lease, and open with reserves for the slow season.
CherryBerry Franchise Loan FAQs
How much does a CherryBerry franchise cost?
We could not verify a current Item 7 range. Costs depend mainly on the space, local construction costs and equipment, so use the current FDD and your own bids.
What is the CherryBerry franchise fee?
Item 5 of the current FDD states the fee and any multi-unit discounts. Confirm it with the franchisor before building your budget.
What ongoing fees does CherryBerry charge?
Item 6 lists the royalty, any brand fund contribution and other recurring fees. Lenders deduct these before calculating how much debt the shop can carry.
Is CherryBerry eligible for SBA loans?
It is listed on the SBA Franchise Directory under code S0368 with no additional notes. Each loan still depends on the borrower, program rules and lender approval.
Can a CherryBerry franchise loan cover equipment and build-out?
Often, yes. An SBA 7(a) loan can typically cover improvements, machines, refrigeration, signage, opening inventory and working capital, subject to approval.
Can I buy an existing CherryBerry with a loan?
Yes. Resales are often easier to underwrite because of their sales history, but the franchisor and landlord must approve the transfer.
How much cash do I need?
It depends on the project and loan program. Expect to bring a cash injection and keep reserves after closing.
Does the franchisor offer financing?
Item 10 of the FDD describes any financing the franchisor offers; otherwise owners arrange their own loans.
How long is the franchise agreement?
Term, renewal and transfer rules appear in Item 17. Lenders want the franchise term and lease to cover the life of the loan.
Can I own more than one CherryBerry?
Possibly, with franchisor approval for each shop. Lenders look at your first shop’s results and remaining liquidity first.
Final Thoughts
A CherryBerry franchise loan is mostly about the space and the equipment inside it. Owners who verify current figures in the FDD, model seasonality honestly, secure a lease that outlasts the loan and keep cash in reserve are in the strongest position to be approved.
US Professional Funding helps buyers and owners finance franchise shops, including new openings, acquisitions, equipment and working capital. Learn more about our franchise business financing and our restaurant financing programs.
